Safe and Sound

MONROE EDUCATION EMPLOYEES

MONROEVILLE, AL
1
Star Rating
MONROE EDUCATION EMPLOYEES is an NCUA-insured credit union founded in 1958 and currently headquartered in MONROEVILLE, AL. As of December 31, 2017, the credit union had assets of $4.3 million.

Members have $2.2 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $2.2 million. Its 1,601 members currently have $4.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MONROE EDUCATION EMPLOYEES exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is key. It works as a bulwark against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

MONROE EDUCATION EMPLOYEES received a score of 2 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.65.

MONROE EDUCATION EMPLOYEES had a capitalization ratio of 2.00 percent in our test, less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having lots of these types of assets may eventually require a credit union to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

MONROE EDUCATION EMPLOYEES came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 24 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

MONROE EDUCATION EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One sign that MONROE EDUCATION EMPLOYEES is doing better than its peers in this area was its earnings ratio of -1.00 percent in our test, better than the average for all credit unions.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.